The UK’s withdrawal from the European Union (EU), set for March 2019, is now little more than 18 months away. Negotiations between the UK government and the European Commission (EC) on an exit deal are still in their early stages, and there is a very long list of details to be squared away, covering a whole range of legal and economic areas.
The shape of any final Brexit deal will have far-reaching consequences for ISDA’s members and the broader derivatives market. This is the opening whitepaper in a series that will examine Brexit-related issues, and highlight the need for a smooth transition.
One of the highest-profile issues for the financial sector post-Brexit is central counterparty (CCP) location. The vast majority of EU clearing currently takes place in London, but there are suggestions that EU regulators might introduce a location policy for euro-denominated swaps to be cleared in the EU.
The EC published proposed regulation for CCP supervision on June 13, 2017. Ahead of that proposal, ISDA highlighted the issues associated with a possible location policy in a letter to EC vice-president Valdis Dombrovskis. This paper outlines the analysis contained in that letter. ISDA and its members are working through the EC’s proposed rules on CCP supervision, and will summarize the results of this analysis in a future whitepaper.
Another important issue is the need to secure legal certainty for derivatives trading between UK and EU counterparties after March 2019. ISDA urges both the UK and EU to agree on post-Brexit transitional provisions for contracts under English law to reduce complexity and costs for all market participants.
Click on the attached PDF to read a full version of this paper.
Documents (1) for Brexit – CCP Location and Legal Uncertainty
Latest
ISDA ALF: Katherine Tew Darras Opening Remarks
ISDA Annual Legal Forum London, February 11, 2026 Opening Remarks Katherine Tew Darras ISDA General Counsel Good morning and welcome to ISDA’s Annual Legal Forum. Thank you for joining us today and thanks to our platinum sponsors – Cleary...
Maintaining Focus on Basel III Endgame Recalibration
In its original form, the US Basel III endgame proposal would have resulted in disproportionate increases in capital for trading book activities, forcing banks to make difficult choices about their participation in certain businesses. After two-and-a-half years, a revised proposal...
IRRBB Management in EMDEs
Interest rate risk in the banking book (IRRBB) has become a growing priority for banks and regulators in emerging market and developing economies (EMDEs). As many of these countries face monetary tightening cycles and ongoing macroeconomic volatility, bank balance sheets...
Response to CPMI-IOSCO on Consultation
On February 5, ISDA and FIA responded to the Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) consultation on the management of general business risks and general business losses by financial market infrastructures (FMIs)....